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ConocoPhillips is reportedly close to finalizing a significant deal to sell its Oklahoma-based oil and gas assets to Stone Ridge Energy for approximately $1.3 billion, according to three sources familiar with the matter.
The sale would mark a major milestone in ConocoPhillips’ ongoing effort to streamline operations and exceed its $2 billion asset divestiture target.
Flywheel Energy to Operate the Assets
The assets, located in the Anadarko Basin, are expected to be managed by Flywheel Energy, an Oklahoma City-based company backed by Stone Ridge Energy. One of the sources noted that Flywheel will serve as the operator on behalf of its investor, overseeing daily operations and production.
Deal Still Under Negotiation
While the discussions are in advanced stages, insiders emphasized that no formal agreement has been signed, and the deal could still fall through. All sources spoke on condition of anonymity due to the private nature of the negotiations.
No Public Comments from Involved Parties
- ConocoPhillips, headquartered in Houston, has declined to comment on the matter.
- Stone Ridge Energy, a division of New York-based Stone Ridge Asset Management, has also remained silent.
- Flywheel Energy, which is partially financed by Gunvor, a global commodities trader, did not respond to media inquiries either.
Assets Rooted in Marathon Oil Takeover
The assets in question stem from ConocoPhillips’ $22.5 billion acquisition of Marathon Oil in 2024, which also added $5.4 billion in debt to Conoco’s balance sheet. In an effort to rebalance, Conoco enlisted Moelis & Co. to manage an auction of surplus properties, including the Oklahoma operations.
Key Highlights of the Sale
If the deal closes as anticipated, Stone Ridge Energy will take over:
- 300,000 net acres in the Anadarko shale formation
- Production capacity of approximately 39,000 barrels of oil equivalent per day, with nearly 50% being natural gas
This acquisition would significantly expand Stone Ridge’s footprint in the U.S. shale market while helping ConocoPhillips meet and surpass its post-acquisition divestment goals.
The potential $1.3 billion deal between ConocoPhillips and Stone Ridge Energy signals a strategic reshuffling of oil and gas assets, with benefits for both sides.
While Conoco aims to hit its financial benchmarks and pay down debt, Stone Ridge and Flywheel Energy are set to strengthen their operational presence in Oklahoma’s Anadarko Basin.If finalized, this sale will be a pivotal move in the reshaping of the U.S. energy landscape.